Hi Naresh,

Yes, since the majority of the Fund's assets are in rupee denominated local Indian shares and the NAV is reported in USD, changes in USD/INR exchange rates will impact the NAV. So, if the rupee appreciates against the dollar, the NAV will go up, even if the underlying share prices don't change. Conversely, if the rupee depreciates against the USD, the NAV will be negatively impacted. In addition to fundamental macro-economic issues that impact exchange rates, FII money flows in and out of India appear to have a significant impact on INR/USD exchange rates.